Bancrofts have little choice but to trust Murdoch

Jonathan Berr writes on the BloggingStocks.com Web site that the Bancroft family that controls Dow Jones & Co., has few options other than trusting News Corp. CEO Rupert Murdoch when he says he won’t meddle with the journalism at The Wall Street Journal if he buys the company.

Berr wrote, “But what people seem to forget is that the Australian media mogul knows that everyone knows his reputation. If he buys the paper, he isn’t going to order up a raft of stories promoting his personal and political agenda. Any manipulation of the news will be done quietly and behind the scenes. At his age Murdoch doesn’t want to go down in history as the person who ruined a great newspaper.

“Moreover, it’s against his financial interest to allow the Journal’s reputation to decline. Advertisers don’t want their names associated with publications that are not credible. News Corp shareholders want there to be smooth sailing as well, so that the merger integration process doesn’t become too big of a distraction for Murdoch.

“Any system designed to protect the Journal’s editorial integrity is bound to have loopholes that Murdoch will exploit. The media tycoon told the Journal that he wouldn’t give the Bancrofts any editorial control over the new company. That, of course, is his right to do as the owner of the company.”

Read more here.